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The Skynet Company is noted for an exceptionally impressive line of Mardi Gras masks. Skynet has established the following selling and distribution support activity-cost pools
The Skynet Company is noted for an exceptionally impressive line of Mardi Gras masks. Skynet has established the following selling and distribution support activity-cost pools and their corresponding activity drivers for the year 2015:
Activity Cost Cost driver
Marketing $170,000 $1,250,000 of sales
Customer service 48,000 8,000 customer
order execution 17,000 200 orders
Warehousing 15,000 125 product lines
Required:
a. Determine the activity-cost-driver rate for each of the four selling and distribution activities.
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